Chris Maurice, CEO of Yellow Card, a Nigeria-based cryptocurrency exchange, made its first commercial foray into the crypto space in 2015, selling Bitcoin (BTC) on eBay.
“We did this for about a week and we had over $ 40,000 in revenue with a 100% profit margin.” Maurice told Cointelegraph in an interview. “At that time we saw stars”, she told and described her euphoria at the time.
The CEO first found out about Bitcoin in 2013 through a friend, Justin Poiroux, Co-founder of Yellow Card, although the exchange was founded later, independent of the eBay startup.
When browsing eBay in 2015 Maurice saw someone selling BTC on the website for three times the market price.
He had an idea To make a profit, Maurice stated:
“I called Justin and said, hey, we’re two relatively smart guys. I know how to use eBay, you know what bitcoin is so let’s make some money.”
However, After the initial success mentioned by selling BTC on eBay, the situation began to unravel. “”That’s when I found out what a chargeback on a credit card is “, explained. “People only stole credit cards online, came to us on eBay and loaded the cards.” said. “When PayPal found out, they took the money from us when we had already sent the bitcoin.”
“Of course I also learned how irreversible Bitcoin is” added. “Credit cards, not so much.”
Credit card chargebacks They essentially allow the parties to recover their money after a transaction. Bitcoin does not offer the same functionality, both an advantage and a disadvantage depending on the situation.
“That was my first foray into cryptocurrencies”, Said Maurice.
Although obviously not particularly feasible, This eBay company shows a profitable early example of arbitrage. A very common trading tactic that is used to profit from observed price differences on exchanges and other scenarios.